Didi Gains as Plans for Hong Kong Listing Take Shape -Breaking
By Dhirendra Tripathi
Investing.com – Didi Global ADRs (NYSE:) jumped 5.7% in Wednesday’s premarket trading on a report that the company is in talks to launch its initial public offering in Hong Kong in the second quarter.
It offers the possibility for existing shareholders to have hope that Didi will be listed and will also allow them to exit if and when shares prices increase. Didi stock is now trading below $14, barring a very brief time. It was listed on the NYSE in June 30. Stock closed Tuesday at 4.90
According to South China Morning Post, bankers representing the ride-hailing company have held preliminary talks with Hong Kong Exchanges and Clearing. The move is in line with the company’s decision to withdraw from the NYSE and list on the island. Didi promised that its NYSE-listed stock would be convertible to tradable shares via another stock exchange.
Didi was listed on the NYSE June 30 despite being advised by Chinese authorities to delay the public debut. This is despite the fact that its data handling practices were not under scrutiny. That didn’t go down well with the regulators in China, which then asked it to stop onboarding new users while also mandating online stores to take its apps off their platforms. They finally forced it to delist the NYSE.
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